Foreign media The Block quoted sources as saying that due to Changpeng Zhao’s (CZ) relationship with Binance.US and the current regulatory environment, Binance.US’s development options are limited. In any case, the regulatory environment and Zhao’s ties to Binance.US will be obstacles to the company’s development, sources said.
At the company’s all-staff meeting, CZ showed employees three potential options and feasibility of the company in the current context. The first option is to continue with planned growth initiatives. This will include new products, including new licenses for stock and futures trading and derivatives trading. But the presentation said that option would require CZ to “resolve” his regulatory issues with the SEC, place his Binance.US holdings in a blind trust, or sell his shares entirely.
The second option is to moderately reduce the company’s capital burn when investing in the platform, which would allow investment in certain platform upgrades, such as sub-account functionality and AWS/infrastructure optimization. However, this option requires VCs willing to invest in the company during the current bear market.
The third option is to “hibernate” until the company’s situation materially improves. The presentation showed that this option would significantly reduce burn rates while maintaining normal business operations and licenses.
Binance.US may currently be moving forward with a third option. In addition to Shroder’s exit, the company also laid off a third of its staff.
